Employers’ perspective on plug-in hybrid vehicles

Until recently, Czech tax and labour-law legislation lacked any regulation of plug-in hybrid vehicles. If employers provided such vehicles to their employees for both business and private purposes, the determination of the employee’s non-monetary…

Benefit cards considered vouchers under VAT Act

At the Coordination Committee’s meeting, the Chamber of Tax Advisors agreed with the General Financial Directorate (GFD) on the VAT treatment of benefit cards. Benefit cards enable their holders to acquire pre-defined benefits from pre-defined…

Amendment to Tax Procedure Code heading to the Senate – summary of major changes

An amendment to the Tax Procedure Code has passed the Czech Chamber of Deputies in its third reading. According to the Minister of Finance, the amendment will allow for the implementation of an online tax authority, formed on the ground plan of a…

Quick fixes: chain transactions and transport allocation

The Czech amendment to the VAT Act implementing quick fixes is still awaiting the second reading in the chamber. Its effectiveness is therefore being postponed once again. In the meantime, the European Commission has issued its explanatory notes on…

GFD publishes information on research and development allowances

In its information, the General Financial Directorate (GFD) comments on the amended regime for claiming research and development allowances, especially with respect to the new duty to notify the tax administrator of the intention to claim such an…

Transfer prices targeted by auditors

January is traditionally a month in which KPMG’s tax department becomes involved in the examination of the financial statements of its audit clients, as transfer pricing may be associated with significant tax risks. Our audit teams assess these…

Ministry of Finance income tax plan for 2021

2020 has just begun, but two new amendments to the Income Tax Act for 2021 are already being discussed. The ministry is planning to introduce a lump-sum tax for selected individuals, monetary contributions for employee meals and the cancellation of…

Quick fixes: GFD information and amendment to EC explanatory notes

The Czech amendment to the VAT Act implementing quick fixes is still waiting for its second reading in the Chamber of Deputies. At the end of January, the General Financial Directorate disclosed information confirming the option of invoking the EU…

Government (not) approving investment incentives

Three applicants for investment incentives were denied financial support to acquire fixed assets by the government. Applications for the support of strategic investment projects were submitted by investors under the previous legislative regime. Aid…

VAT on fuel cards to be affected by CJEU case law

Fuel card transactions are operated all across the EU. Therefore, some new measures being implemented in just some of the member states might be problematic. Hence, most EU states are still reluctant to apply the Court of Justice of the EU’s…

GFD information on transfer of heat and cold to 10% VAT rate

In its information effective from 1 January 2020, the General Financial Directorate (GFD) draws attention to the rules of determining the date of supply for the delivery of heat and cold. It provides examples how to technically solve the settlement…

VAT: Correction of tax base for irrecoverable debts in detail

The amended wording of the VAT Act effective from 1 April 2019 introduced significant changes concerning corrections of the tax base in respect of irrecoverable receivables. The General Financial Directorate (GFD) has now published detailed…